Crypto - and traditional markets – the volatility of Bitcoin is testing year minimum of 2018

the The Performance of Bitcoin rose again, and is the best in comparison together with the Oil. The coupling of Bitcoin with the rest of the market is also one of the lowest. Finally, the volatility of Bitcoins is almost as low as in the beginning of November 2018.

Dr. Philipp Giese
31. March 2019BTC$4.104,98 , and 0.49%Facebook Twitter LinkedIn xing mail

Since the beginning of November, we keep track of how Bitcoin fails in comparison to traditional markets. This is not a trivial comparison of the Performance. Institutional investors are interested in Bitcoins claim to be a non-correlated, stable Asset, extremely. In a guest contribution on the €uro Fund research, BTC has dedicated to ECHO the question of whether Bitcoin and the strongly correlated crypto market would be a good addition to classic portfolio. This question is the institutional investors in the crypto-market is interested in, less of a hope of a new Bull Run like the end of 2017. to clarify

the Suitability of classical Portfolios can be considered an Investor in various sizes. For one, it would be interesting to see whether and how much Bitcoin is linked to traditional markets. On the other, a stable Asset for a long-term Investment is attractive. The volatility of the asset do not need to be extremely low. You should have at least over a longer period of time, a certain degree of stability.

We pay attention in this series of articles, therefore the correlation in the last month, on a sliding correlation of a continuous volatility and a sliding Performance. The last three values are calculated for each day based on the last 30 days. As a comparison, assets in traditional markets, we consider indices S&P 500, Dax and Nikkei, Oil and Gold.

How to develop the relationship between Bitcoin and the traditional markets?

in the Meantime, the correlation of Bitcoin or Ethereum fell to XRP to a new Minimum, but could rise again the next day in usual heights:

As Bitcoin is the leading currency within the crypto Ecosystem and institutional investors as the first on this view, it is sufficient, if we focus on currencies when compared to the traditional market on the biggest of all Crypto.

correlation: crypto-currencies vs. traditional market

The negative correlation of Oil remained. The coupling between Gold and Bitcoin fell further into Negative territory, however, the coupling between the S&P 500 Index and the Bitcoin price is currently hardly available. You can also see that the Nikkei Index has a strong anti-correlation to Gold:

The Trends of last week were confirmed. Furthermore, Gold and Oil are correlated to Bitcoin, during the three indices show a positive coupling to Bitcoin:

Overall, the absolute mean correlation Bitcoins with other markets, with 26 percent still the lowest. Even in consideration of compensation effects by any of the anti-correlations, the picture looks similar. Bitcoins coupling to the rest of the markets, with 17 percent, the second-largest. Only Gold can provide a coupling of 16 percent a lower correlation to the rest of the market.

Performance of the Bitcoin re-Oil rose

The current sideways position, the average volatility for the last 30 days have fallen due to significantly. Considerably less than two percent overthrown, it differs little from that of the comparison assets:

The Performance was at 25. March the the comparison assets, however, could rise sharply. It is, therefore, now again almost at the level of the Performance of Oil, which is one of the Top performers on the market:

The overall picture is better than in the last week: The Performance is one of the best on the market, and the correlation is one of the lowest in the market. Although one could cheer about the low volatility, however you should be careful: The low volatility of the sideways phase between September and mid-November – that is to say before the dramatic price fall, driving the Bitcoin price under US $ 4,000. We hope that it comes to that.

data on the 29. March of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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